“I will not experiment with Zim economy” – Mangudya

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The central bank governor John Mangudya said on Wednesday he will not experiment with the economy during his tenure but will find ways to push for implementation of radical changes that will drive economic growth.

The Source

Mangudya, who was appointed central bank boss last year, told editors from media houses operating in the country that Zimbabwe’s economy was “an awakening giant.”

The Zimbabwean economy is projected to grow by between one and 3,2 percent this year, accounting to government and World Bank projections although other analysts have put it at one percent.
Some of the editors, however, said the growth had not translated to any tangible benefits for the ordinary person.

But Mangudya said there was a “crisis of discipline” and lack of sacrifice in the country, virtues which are key ingredients in driving the economy on a sustainable growth trajectory.

“I do not want to experiment with people’s lives,” the governor said, keen to emphasise an approach that differs with that adopted by his predecessor, Gideon Gono, whose ten-year term was defined by unorthodox interventions in the economy.

“I would rather experiment in a laboratory than in an economy.”
He said lack of discipline as evidenced by high levels of corruption, profiteering, smuggling of goods and minerals, lack of transparency were some of the ills stifling economic transformation and making life hard for the ordinary man.

Zimbabwe is estimated to be losing billions through illicit dealings in major economic sectors and government stands accused of failing to stamp out the corruption due to alleged involvement of senior officials.

Mangudya said mining, tourism and agriculture were the three sectors key to Zimbabwe’s economic growth going forward and the central bank will soon come up with measures to buttress efforts to boost their performances.

“Our growth areas are in mining-gold, coal, platinum and diamonds, tourism and horticulture,” he said.

“We want to mobilise resources to support these sectors.”
The central bank boss said he believed in tourism minister Walter Mzembi’s vision of a $5 billion industry by the year 2020.

Currently, earnings from the industry are around $1 billion annually.

While foreign direct investment was critical in improving performance, it was not the panacea to the challenges bedevilling the economy, he said.

Mangudya said low productivity, lack of competitiveness and low business confidence were the major ills impacting on the country’s economic performance while calling for “recalibration” of the economy to solve major structural challenges.

Addressing the cost of doing business in the country would help improve its competitiveness, he said.

He said demands for salary increases in an economy which was not performing were unrealistic.

“If salaries are 80 percent of government expenditure, there is no room to increase the salaries,” he said.

‘People in this country are paid for going to work and just being active but not for productivity.”

Mangudya reiterated that the country would in the foreseeable future continue to use the multi-currency system with no possible return of the local currency in sight.

5 thoughts on ““I will not experiment with Zim economy” – Mangudya”

  1. Munyaradzi says:

    Good to hear, but what about the bond coins, aren’t they not an attempt to re-introduce the disgraced Zimbabwean dollar through the backdoor?

    Can the Governor tell us how much hard currency has been set aside to redeem the bond coins and the actual value in circulation.

    1. Chen Chikezha says:

      Very true Munyaradzi it gives one goose bumps to hold the bond coin and see the picture of the Zimbabwe ruins on it’s flip side. They are basically our old coins and one wonders why we told they are same value with US$. We should just have brought in US coins or SA Rand coins……..We are being fed with rubber and told it is food.

  2. TUNGAMIRAI says:

    Mr.Governor,nobody really needs those bond coins.Plenty rand & pula coins for change are already in circulation. Your bond coins came too late & can only raise Zimbabweans’s suspicion & fear of the useless Zim dollar return through the back door.Please you are being kindly asked to remove your bond coins from circulation as they are being rejected where it matters most.

  3. ndu says:

    Governer my foot muchango ngungya ngundya whats left of it wobawo mari wozongosiya so..hapana akambo succeeda ne kiffirnomics

  4. Jesse says:

    The reality is that you need to bring back the Zim dollar, which means you have to rebuild the entire machine that is treasury and the RBZ. Without this institution and the sub-institution of the currency then Zimbabwe will remain doomed. The country requires a liquidity event, we are the only country in Africa to have ever been rid of our local currency in the face of adversity. The Angolans, Mozambiquans, Zambians, Malawians were all dollarised once upon a time but the kept their currencies as a form of liquidity value even when there was no confidence in their monetary institution. If you look at all these countries now they are using their local currencies. Value right not at this point in the cycle is not relevant – because there is none, the economy is dead – what is paramount is having a recognisable acceptable medium of exchange and building a solid institution around that – hence we need to resurrect our sovereign.

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